Riot Platforms has modified its $200 million credit agreement with Coinbase Credit, as disclosed in an 8-K filing. The revised terms replace the variable interest rate with a fixed one, enhancing cost predictability as the company shifts focus towards artificial intelligence and high-performance computing infrastructure, while simultaneously reducing its bitcoin holdings. As of Tuesday, Riot held 15,680 BTC, marking a decline from the 19,368 BTC it held at the beginning of the year, according to bitcoin treasuries.net.
The revised agreement maintains the same loan size and collateral structure, with the loan secured by Riot's bitcoin, USDC, and cash held with Coinbase Custody. However, the maturity date has been extended by 364 days, with the option to further extend it by a year, subject to lender approval.
The loan operates under a tiered loan-to-value framework, where collateral top-ups are triggered if the LTV ratio exceeds 70%, and liquidation occurs at 80%. This framework may lead to continued depletion of Riot's bitcoin treasury if the cryptocurrency's price continues to decline, potentially funding its pivot into AI and HPC. Riot's shares have dropped by approximately 9% on Tuesday, falling below $17, with the company scheduled to report its Q1 earnings on April 30.